"A red car won't cost you more than a green, yellow, black or blue car. Insurers are interested in the year, make, model, body type, engine size and age of your vehicle. How you're perceived based on the color of your car is another matter," according to Geico.

Still, 53 percent of millennials believe this myth to be true. The same can be said of 45 percent of college graduates and 42 percent of Americans with an annual household income of $75,000 or more.

"These results indicate that millions of Americans need a refresher on what insurance does and does not cover," Laura Adams, insuranceQuotes.com's senior analyst, said in a statement.

Forty-four percent of Americans incorrectly believe that their auto insurance will not cover an at-fault driver. In reality, most insurance agreements will help pay for repairs even if an accident is your fault. According to insuranceQuotes.com, most millennials don't know this.

In addition, 17 percent of drivers in the United States are unaware that their location can be a huge factor in the rates that they will pay.

"If you live in an urban area you will pay more money than if you are in a suburban area because likely it more congested," said Worters.

In general, higher rates of vandalism, theft and accidents occur in cities compared to rural areas. But, population isn't the only factor in play. Insurance rates can spike based on the cost and frequency of litigation, auto repair and medical care costs, likelihood of insurance fraud and weather patterns.

Additionally, if your car is burgled, you may not be covered. Thirty-four percent of Americans believe that items stolen from their vehicles are covered by their auto insurance. This is not the case. Instead, stolen property is protected by homeowners and renters insurance.